GoPro's Outlook Not a Snap

GoPro's initial public offering priced at $24 a share, the high end of expectations, a sign of strong demand for the video camera maker. James Gellert, president and CEO of Rapid Ratings, discusses the company's IPO on MoneyBeat. Photo: Getty Images.

By
Dan Gallagher

Updated June 26, 2014 4:41 pm ET

GoPro scored a warm welcome to the public market on Thursday. But investors' open arms usually come at a price. The maker of popular digital cameras is now under some pressure to deliver results equal to its generous valuation.

That is no simple matter. GoPro's well-known brand and financial metrics, with gross margins averaging above 40% over the past nine quarters, appealed to investors. The stock priced at $24, the high end of its expected range, and jumped to close at $31.34, up 31%, in New York.